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The Sterling Tire Compony's income statement for 2 0 XX is os follows: Given this income statement, compute the following: a . Degree of opersting
The Sterling Tire Compony's income statement for XX is os follows:
Given this income statement, compute the following:
a Degree of opersting leveroge. Round the final answer to decimal places.
DOL
b Degree of financial leveroge. Round the final answer to decimal places.
DFL
c Degree of combined leversge. Do not round the intermedlate calculations. Round the final answer to decimal places.
DCL
c Using your answers to and b colculate the percentoge incresse in EBIT and EBT from percent incresse in soles volume.
Do not round the intermediate calculations. Round the final answers to decimal places.
c Does financial or operating leverage hove the grester impact?
DFL
DOL
d Breakeven point in units. Round the final answer to the nearest whole number.
Breakeven point tires
e Breskeven point considering the interest expense os fixed cost.
Breakeven point tires
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